India, EU trade pact to help promote trade in auto sector: Sefcovic

New Delhi, Sep 12 (PTI) EU Trade Commissioner Maros Sefcovic on Friday said that the proposed trade pact with India will facilitate two-way trade through tariff liberalisation across all automobile components, from engines to brakes.

He also said that the officials of the two sides are now maximising their efforts to finalise negotiations on the proposed free trade agreement by the end of the current year, as announced by leaders of the two sides.

India and the EU are holding the 13th round (September 8-12) of negotiations for the agreement here. Sefcovic and the European Commission's Agriculture Commissioner Christophe Hansen are here to review the progress of talks with Commerce and Industry Minister Piyush Goyal.

"The automotive market in India is expanding and thriving. And of course, I believe that our shared goal with Honourable Minister Goyal is to ensure that the free trade agreement would facilitate two-way trade flows between India and the European Union under the condition of tariff liberalisation for all components, from engines to brakes," he said here at the ACMA event.

"And I believe that this would be a win-win scenario for our industries, and would, in particular, facilitate the introduction of advanced new technologies into India. I believe that by combining the power of our automotive markets, the world's third and fourth largest, we can lead the charge in developing cutting-edge combustion engines as well as electric vehicles with advanced battery technologies and smart mobility solutions that meet the needs of the changing world." These remarks are important as the EU is seeking duty concessions in the auto sector from India. India has provided duty concessions in the sector for UK firms under a trade pact between the two countries, which was signed on May 6 this year.

India at present levies over 100 per cent duty in the auto sector.

The EU Trade Commissioner also said the EU-India relationship is not just about trade, it is about the high-value-added investment that will create additional thousands and millions of jobs.

A number of European auto firms, such as Volkswagen and Mercedes-Benz, have set up manufacturing units in India.

"Our cooperation in this sector is also about sharing the best practices in manufacturing, in investing, in research and development, especially if it comes to the next generation vehicles. We would work on standards, and of course, we would jointly address global challenges like climate change through cleaner and more efficient technologies," he said.

Speaking on current global uncertainties, he said the two sides are working together to unlock investments, reduce barriers, expand market access, and strengthen supply chains to guard against risks from unforeseen events.

The imposition of high tariffs by the US has created uncertainties in global trade. The US has imposed a steep 50 per cent duty on Indian goods.

"...We have a mutual interest in engaging more closely on both, be it bilateral or global issues," Sefcovic said. PTI RR BAL BAL